Systematic Withdrawal Plan - SWP


DEFINITION of 'Systematic Withdrawal Plan - SWP'

A service offered by a mutual fund that provides a specific payout amount to the shareholder at predetermined intervals, generally monthly, quarterly, semiannually or annually.

BREAKING DOWN 'Systematic Withdrawal Plan - SWP'

Three main reasons for using SWPs are to meet living requirements (usually when retired), for tax planning purposes, or to comply with mandatory retirement plan withdrawal rules after reaching age 70.5.

  1. Withdrawal Plan

    1) A payment structure arranged with a mutual fund in which the ...
  2. Redemption

    The return of an investor's principal in a fixed income security, ...
  3. Sequence Risk

    The risk of receiving lower or negative returns early in a period ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Redemption Suspension

    A provision on a hedge fund preventing the withdrawal from the ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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